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nobody
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Replying to Avatar John Christensen

# Bitcoin can’t scale!

Let me start by saying, I love Bitcoin. I mean, who doesn’t love the idea of digital money that’s decentralized, censorship-resistant, and run by math geeks instead of banks? But, like many things you love, it didn’t take long before I found out it wasn’t perfect. As I got deeper into Bitcoin, I hit a major snag—it couldn’t scale. And when you realize something you love has a flaw, it’s like finding out your favorite superhero can’t fly. Sure, they can still save the day, but now you’ve got to rethink how they do it.

### The Bitcoin Cash Detour: Bigger Isn’t Always Better

At this point, I was looking for answers, and that’s when Bitcoin Cash came along. It promised to solve Bitcoin’s problems by increasing the block size—more transactions, faster processing. Seemed like a no-brainer, right? It’s like upgrading your car’s engine so you can go faster. I thought, “Hey, maybe this is the right path!” So, I hopped on the Bitcoin Cash bandwagon for a bit.

But, as with any quick fix, the cracks started to show. You know that moment when you upgrade to a bigger smartphone, and suddenly it doesn’t fit in your pocket? That’s what Bitcoin Cash felt like. The bigger blocks meant more data, and more data meant it was harder for regular folks to run their own nodes. Suddenly, this thing that was supposed to be all about decentralization started leaning towards centralization—big players with big resources running the show. Not exactly the decentralized dream I signed up for. So, reluctantly, I realized that while Bitcoin Cash had its merits, it wasn’t the answer.

### Back to Bitcoin: Enter the Lightning Network

Returning to Bitcoin, I was still on the hunt for that elusive solution. That’s when I discovered the Lightning Network, and man, did it seem like the perfect answer. It promised instant, nearly fee-less transactions by taking most of the transactions off-chain. It was like finding a secret passage in a video game that lets you skip all the hard levels. I was stoked.

But, as anyone who’s ever tried to navigate a secret passage knows, it’s not always smooth sailing. The Lightning Network came with its own set of challenges—liquidity problems being the biggest one. Managing liquidity channels was like trying to keep a bunch of spinning plates in the air. If you got it wrong, you were either stuck or ended up relying on big players to keep things running smoothly. And just like that, the centralization monster reared its head again. Lightning was cool, but the more I dug into it, the more I realized it wasn’t the silver bullet I was hoping for.

### The Liquid Network: The Forgotten Solution

By now, I was feeling a bit like Goldilocks—one solution was too big, another was too complicated, and I was still searching for the one that was just right. That’s when I remembered something from my early Bitcoin days: the Liquid Network. I’d played around with it briefly before dismissing it as just another sidechain experiment. But hey, I was out of options, so I figured, why not give it another look?

And that’s when it hit me. The Liquid Network was like that old friend you haven’t talked to in years but who suddenly shows up at the exact right time with exactly what you need. Liquid wasn’t trying to do what Bitcoin or Lightning did—it was doing something entirely different. It’s designed for fast, private transactions between exchanges and big players, without clogging up the Bitcoin base layer. It’s like the express lane at the grocery store—if you’ve got 10 items or less, you zip through without slowing everyone else down.

### The Perfect Three-Legged Stool: Bitcoin, Lightning, and Liquid

It was then that I realized something profound. These three technologies—Bitcoin’s base layer, the Lightning Network, and the Liquid Network—weren’t competing solutions; they were complementary. Together, they form a perfect three-legged stool that balances security, scalability, and speed.

Here’s the deal:

1. **Bitcoin’s Base Layer**: This is the foundation, the bedrock. It’s decentralized, secure, and slow—but in a good way. It’s like the tortoise in the tortoise and the hare story. Sure, it’s not winning any speed races, but it’s rock-solid, and you can count on it to get the job done safely.

2. **Lightning Network**: Lightning is the hare—fast and nimble, perfect for quick, small transactions. But like the hare, it has its vulnerabilities. Managing liquidity is tricky, and it can start to centralize if you’re not careful. But it’s still an essential part of the ecosystem, allowing you to buy your morning coffee without waiting 10 minutes for a confirmation.

3. **Liquid Network**: Liquid is the middle ground, the express lane for bigger transactions. It’s private, fast, and doesn’t burden the Bitcoin base layer. It’s not as decentralized as Bitcoin, but it doesn’t need to be. It’s like the specialized tool in your toolbox—it’s not for every job, but when you need it, nothing else will do.

Together, these three form a system that’s resilient, adaptable, and, most importantly, decentralized where it counts. Bitcoin’s base layer remains secure and untouchable, Lightning handles the day-to-day transactions, and Liquid takes care of the big movers and shakers without compromising the core network.

### Conclusion: The Journey Was Worth It

Looking back, I’m glad I took the detour through Bitcoin Cash and struggled with Lightning’s complexities. Those experiences taught me the importance of trade-offs in technology, and that no single solution can do it all. But together, Bitcoin, Lightning, and Liquid create a robust system that’s ready to scale, ready to innovate, and ready to meet the needs of users worldwide.

So, here I am, a bit older, a bit wiser, and a lot more confident in Bitcoin’s future. I’ve found my perfect three-legged stool, and it’s holding up just fine.

Awesome article. I’m 2/3rds of the way through the same journey and using what limited free time I have to learn about Liquid and federated mints. I wish I could spend all of my time on it and just nail it all right now. This weekend between gardening, preserving and getting ready for hunting season, I’ve been trying to troubleshoot a Tor issue on my node/file server.

Thanks for describing this roadmap you’ve followed!

The story of how I “woke up”.

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I finally started wake up to the fact that our government does not have our best interests at heart, but indeed views us as little more than livestock to be exploited and sacrificed at will, between 2001 and 2003.

It was a combination of things that led me to this conclusion. In 2001 at age 30, I finally learned about what “money”, as I had known it since I was a kid, is. A man whose brothers I was working on a startup venture for suggested that I read “The Creature from Jekyll Island” by G. Edward Griffin. Having studied economics a bit in college, it didn’t take much to convince me to read it. My mind was blown. I instantly realized that on top of the criminal, overt forms of taxation we are being subjected to, there was this insidious hidden tax called inflation that was not only stealing from all of us, but had only one possible eventual outcome in terms of the long term economic effects on the country itself. It was the first time that I finally understood that the word inflation doesn’t mean “the increase in the cost of goods and services over time”, but that it simply means inflation/dilution of the money supply. What really blew me away was that none of this immensely important material was covered in any of my Econ classes.

The whole thing stunk, but what was there to do with this information? I was working an exciting job, trying to “get somewhere” and didn’t really have any assets to speak of.

After my friend (and CEO of this venture) and I took this group of companies from incorporation to profitability in an 18 month period, the owners unceremoniously cut us loose and basically said “we’ll take it from here” and moved the whole operation to Texas. I had just gotten married and started a family, so I had to try to parlay what experience I had in business into another position that would pay me similarly to what I had been making.

Of course that fall was when 9/11 happened. While I was initially gripped by the same nationalistic desire for justice as the rest of the country to see this act of terror avenged, there was something about the events of that day, the collapse of the towers themselves, and the official narrative that didn’t mesh with what I knew about physics.

I worked for a couple of years doing whatever I could do to pay the bills and keep a roof over our heads, and eventually got a job as national service manager for a company that builds and distributes critical power equipment for healthcare, industry, the military and transportation.

Despite the owner of that company being a real tyrant and it being the longest three years of my life before the 2008 financial crisis and the owner’s lack of fiscal responsibility led to mass layoffs, the position afforded me a lot of free time to read. In the first year I automated a lot of the QA and service functions in the company, so things that used to take the former service manager all day to do, I usually had done by mid morning most days.

All this time, the things were bothering me about our monetary system and 9/11 had persisted. That was when I read Niels Harrit’s peer reviewed report in The Open Chemical Physicals Journal 2009, entitled “Active Thermitic Material Discovered in Dust from the 9/11 World Trade Center Catastrophe”. Between that and the hours of research I did through resources provided by Architects and Engineers for 9/11 Truth and other organizations, I became obsessed with unravelling a bunch of other things that weren’t meshing with my previously held belief that government and authority were there for our good.

I consumed everything I could on history, Austrian Economics, the teachings of Ron Paul, and material from notable anarchists for the next couple of years. I spent a good five years quite angry and disillusioned. And I was driving people around me crazy sharing what I had learned, particularly about 9/11 and the government.

I finally reached a point where I realized that I could either drive myself and my family crazy with things I was powerless to change, or I could focus on preparing for what lies ahead and enjoying my life.

It wasn’t until I found Bitcoin in 2020, and finally learned enough about the mechanics of acquiring, moving and custodying the asset in early 2022, that I was not only fully awake, but finally had a sense of real hope again.

God Bless Bitcoin ₿

I think that press conference was part of the reason the networks started inserting a delay in live broadcasts. It’s pretty disturbing.

Say hi to Warren G for me 🤙🏽

gn nostriches. The long weekend is coming to a close. Have a good week 🤙🏽

Here’s what I sent to my 19 year old daughter after I was first introduced to the concept while reading The Bitcoin Standard. I knew about the concept of delayed gratification, but time preference is even broader.

The Most Important Concept You Can Learn to Optimize Your Chances of Success - Time Preference

Concept Demonstration: The Marshmallow Experiment

The Stanford Marshmallow Experiment was a study that looked at time preference and was conducted by researcher Walter Mischel between 1968 and 1974. The experiment involved approximately four-year-old children in whom reward deferral was studied.

In individual sessions, the children were shown a desirable object such as a marshmallow or a cookie. The experimenter told the children that he would leave the session room for some time and that they could call him back by pressing a bell and then receive a marshmallow.

However, if they waited until the experimenter returned on his own, they would receive two marshmallows. If the child did not ring the bell, the experimenter usually returned after 15 minutes.

Follow-up Observations

In follow-up observations of the Stanford Marshmallow Experiment, reward deferral was shown to be a reliable predictor of later academic success and a number of personality traits.

The researchers found that children who were able to wait longer for preferred rewards tended to have better life outcomes. These outcomes were measured by factors such as academic achievement, educational attainment, body mass index (BMI) and other factors.

In short, it’s about delayed gratification. Statistically, peoples’ level of success is linked to their ability to delay immediate rewards in favour of greater rewards in the future, through patience, and investing time and energy today that will pay greater rewards tomorrow.

Examples of low time preference behaviour:

- saving up for quality items versus buying lower quality items today

- exercising

- eating high quality food

- getting adequate sleep

Not bad in the shade in Sept in northern AB. Hard to believe I’ll be freezing my ass off in a deer stand a month and a half from now.

This is one of my best food product discoveries of the year so far. It’s like soy sauce with the taste of wasabi already in it. Nice and hot.

Carrots finally done for the year. The dog never moved from that spot trying to get the odd piece. He loves carrots 🥕. 11 good sized servings survived what we pilfered for meals over the summer.

I need to get one for sure! This year was a pressure canner, vac sealer, and a dehydrator.